APPLY PREDICTIVE

ANALYSIS TO SLOVE
BUSINESS APPLICATION
PROBLEMS

By: Manohar Sivvala-20111632

Tanishq Mishra-20111656
Anugu Harshavardhan Reddy-20111608
Eswar Sai Akhil-20111620
Subject: Introduction To Business Analytics
Class: 2 BBA- Section D
CIA-3 Part A Project
Prof Name: Dr. Manohar Giri
Contents
Identification Of Problem:.....................................................................................................................3
Different factors being considered for Predictive Analysis....................................................................3
INTERNAL FACTORS....................................................................................................................3
EXTERNAL FACTORS...................................................................................................................4
Possible Data Sources For Predictive Analysis.......................................................................................5
Conceptual Model.................................................................................................................................6
Expected Outcome of the Predictive Analysis.......................................................................................7
Identification Of Problem:

XYZ Solutions is a start-up formed by Manohar, Harsha, Tanishq and Akhil. These
entrepreneurs are graduates from Christ University, Lavasa, Pune. This business is focused
on the digital revolution on implementing digital payment support to big tech giants. The
entrepreneurs are planning to hire 100 employees to ensure that these 100 employees are
hired as the base for the organization.
XYZ company requirements are people who are freshers who are experienced in
digitalization and business analytics. They also want people who have completed their
graduation recently but were unable to find a job for few months. The entrepreneurs believe
that hiring young graduates will be needed because they are now exposed and experienced in
the digital future, making them aware of the revolution taking place in the 21st century.

However, Manohar and Tanishq, who have been given the HR job to recruit the young lads in
the organization, will have to balance the amount of the salary these hired employees should
get based on the experience and other factors and the company growth which the
entrepreneurs aimed to aspire a 10% growth in the value of the company per annum. The
problem is to predict the relationship between the recruitment process and company growth
to ensure it reaches its objectives being established. The business environment in which they
are operating is rapidly changing, making it challenging to identify the trend in the economy.
However, experts guarantee that this century belongs to the digital world.

Different factors being considered for Predictive Analysis

INTERNAL FACTORS

The internal factors called "endogens" are the factors that influence the recruitment of
employees within the organization. The internal forces can control that the organization can
control are:
1. Recruitment Policy (Independent Variable)

The organization's recruitment policy, i.e., recruitment from internal and external
sources, also affects the recruitment process. An organization's recruitment policy sets
the targets or recruitment and provides the framework for implementing the
recruitment programme. It may involve developing an organizational system for
recruitment programmes and procedures by filling vacancies with the best-qualified
personnel.

Recruitment Policy Factors

• The organization's requirement.
 • Organizational goals 
• Preferred recruitment sources.
• State reservation policies.
• The company and its competitors' staff policies.
• Costs and financial consequences of recruitment.

2. Human Resource Planning (Independent Variable)

Effective human resources management helps to identify the gaps within the
organization's existing workforce. It also helps determine the number and
qualifications of the employees to be recruited.

3. Size of the Organization (Independent Variable)

The organization's size affects the process of recruitment. If the organization plans to
expand its operations, it will consider hiring more staff to manage its work.

4. The cost involved in the recruitment

As a result, the employer costs for recruitment, organizations are trying to employ the
recruitment source, bringing the organization lower recruitment costs for each
candidate.

EXTERNAL FACTORS

1. Supply and Demand

In terms of recruitment, the availability of employees is essential both within and

outside the organization. If the company needs more professionals and if the market
supply for the professionals the company demands is low, the company will have to
rely on internal sources by offering special education and development programmes.

2. Labour Market (Independent Variable)

The recruitment of the organization will affect the working conditions in the
community where that organization is located. Even informal attempts at recruiting,
such as displaying the request or notice at a meeting in the recruitment course, will
attract more than enough applicants when there is an excess of personnel.

3. Unemployment Rate

One of the factors influencing applicants' availability is economic growth (whether

the economy is growing or not and its rate). When it doesn't create new jobs, the
supply of skilled workers, in turn, leads to unemployment, is often excessive.
 4. Competitors (Independent Variable)

Competitors' recruitment policies also influence the recruitment role of the

organizations. To compete, organizations often have to change their recruitment
strategies following the competitors' policies.

Our analysis decided to choose some of the factors as an independent variable because the
problem states a relationship between the recruitment process and company growth. The
company growth depends on the factors for recruiting people, therefore, making it a
dependent variable. And the factors which the company growth rely on is the independent
variable.
For a company to get a high growth rate, the human resource plays a vital role in achieving
this growth rate set up by XYZ.

Possible Data Sources For Predictive Analysis

HR data sources can be categorized into two groups.

 HRIS Data- The data from the Human Resources Information System (HRIS)
contains most of its staff's information. Workday, Oracle and SAP are typical
examples of HRIS systems.
 Other HR data- Other HR data. Some HR data are necessary but not included
in the HRIS for data-based decision making. Often, this data is collected
through surveys or other methods of measurement.

HRIS Data Sources

1. Performance management- The PMS is part of the HRIS and contains information on
the management of performance. This includes assessments and ratings by employees.
2. Talent development- It's a bit weird to have talent development data. Talent
programmes often include courses and workshops included in the management system
of learning. Another vital piece of information that can be retrieved from the HRIS is
the broader approach to developing talent.

Other HR Data
1. Engagement survey- The interview is often part of the staff data bank survey, which
we have referred to previously. However, frequently, third party surveys are collected
to ensure anonymity. While this significantly reduces your data collection potential, it
does mean that the engagement survey is a separate source of information.
2. Employee survey data- It's more of an independent category. A large number of HR
data are collected through surveys. This could range from an opinion poll on food
quality in a cafeteria, a popularity survey of the CEO, and a traditional commitment
 survey. Most companies decentralize surveys, leading to organizational scattering of
survey data and fatigue. Collecting all this information in one location helps to
understand the survey data of your employees better.

Conceptual Model

For predicting the company growth of XYZ based on the recruitment process, we have to
establish an equation to show that company growth being a dependent variable relies on the
independent variable based on the factors of the recruitment process.

Let y be the dependent variable (Company Growth)

The independent variables are:
X1= The value of the recruitment policy
X2= The rank of human resource planning
X3= The size of organization
X4= The quality of labour in market
X5= The number of competitors
β1= The rate of change of X1
β2= The rate of change of X2
β3= The rate of change of X3
β4= The rate of change of X4
β5= The rate of change of X5

Y= β1x1 + β2x2 +β3x3 + β4x4 - β5x5

For x1, the importance of recruitment policy is positive in relation to the company growth
because if the policy of recruitment is good to attract the labour market, we will be able to
attract high quality in this competitive market.
For x2, the importance of human resource planning is positive in relation to company growth.
Based on the recruitment process, we need to find the qualifications and number of
employees to follow the procedure.
For x3, the organization's size is positively related to the company growth because it is big,
which means that it will be a higher market share in the competitive market. The recruitment
process will play a massive role in the size organization, which will lead to high company
growth.
For x4, the quality of labour in the market positively relates to the company growth because
labour is one of the factors of productions, will drive the business growth it requires. If the
quality of the labour is good, they will be able to do the work effectively and efficiently,
which can help drive the company's growth.
For x5, the number of competitors in the market is a negative relation to the company growth
because of the number of competitors increases in the industry in which it is operating; then
the market share will fall because of the number of competitors in the market, which will
bring down the company growth

Expected Outcome of the Predictive Analysis

This equation showing the relationship between the recruitment process and its growth tells
us that it is positively correlated. If one of the independent variables increases, then the
company growth will also increase and vice-versa. Considering the number of competitors
that will reduce the company growth estimate, they will be an upward movement with a slight
downward movement being noticed in the regression alone.

By drawing the correlation diagram using the values of the factors affecting the recruiting
process and the company group, an upward trend is noticed. Therefore, from the overall
summary, a positive movement is seen from the relationship of factors affecting the
relationship and company growth.